State contracts provisions changed.

HF 2232 changes Minnesota's state contract rules to protect the state from unfair terms and support small businesses. The bill bans contract clauses requiring the state to pay for others' mistakes, allowing contractors to unilaterally change terms, or mandating arbitration. It also creates new opportunities: small businesses in economically disadvantaged areas and veteran-owned small businesses can receive up to a 12% preference in state contracts, and the state can award contracts directly to small businesses without competitive bidding up to $100,000. Additionally, prime contractors must subcontract portions of contracts to small businesses, with financial incentives for meeting goals and penalties for failing to do so.